Binance’s CZ Threatens Lawsuit Over Bloomberg’s Trump-Linked USD1 Stablecoin Claims
Changpeng Zhao has formally rejected a Bloomberg report accusing Binance of coding, promoting and holding over 90% of the Trump-linked USD1 stablecoin supply. Bloomberg also claimed Zhao sought a U.S. presidential pardon after a $2 billion transfer with a UAE fund and that Binance played a key role in USD1’s launch. Zhao labels the article a “hit piece” full of factual errors, suggests it was backed by a competitor, and recalls Bloomberg’s 2024 apology for falsely calling Binance a Ponzi scheme. He has threatened legal action for defamation. This dispute unfolds amid growing crypto regulation, including the House GENIUS Act on stablecoins. Traders should watch the lawsuit’s impact on USD1 stablecoin market confidence and broader crypto regulation trends.
Neutral
The news centers on a stablecoin whose price is pegged to the U.S. dollar, so direct price volatility is unlikely. Zhao’s emphatic denial and planned legal action may reassure investors in the short term, while heightened regulatory scrutiny could affect sentiment over the long term. Overall, market confidence in USD1 stablecoin should remain stable.